Centre hikes windfall tax on diesel, ATF exports
The government has increased windfall gains tax on diesel and aviation turbine fuel exports while keeping petrol export duty unchanged. The revised levies, effective Tuesday, aim to ensure domestic fuel availability amid global crude price volatility and geopolitical tensions in West Asia
New Delhi: The government has raised windfall gains tax on diesel and aviation turbine fuel (ATF) exports, while keeping the levy on petrol unchanged for the fortnight starting Tuesday.
According to a notification issued by the Finance Ministry, the special additional excise duty (SAED) on diesel exports has been increased to Rs 14 per litre from Rs 13.5 per litre. In addition, the duty on ATF exports has been raised more sharply to Rs 12.5 per litre from Rs 9.5 per litre. However, there is no change in the SAED on petrol exports, which will continue at Rs 1.5 per litre. The revised rates will come into effect from today. Moreover, the government has kept unchanged the existing duty rates on petrol and diesel meant for domestic consumption.
Earlier in May, the government had revised export levies on petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning June 1. At that time, the duty was fixed at Rs 1.5 per litre on petrol, Rs 13.5 per litre on diesel and Rs 9.5 per litre on ATF exports.
In March, the export duty on diesel and ATF was imposed amid escalating tensions in West Asia following the US-Israel attack on Iran and subsequent retaliation. The windfall tax was introduced to improve domestic availability of petroleum products and discourage exports at a time of elevated global crude prices driven by the West Asia conflict.
In April, the Centre increased excise duties on petroleum products, including high-speed diesel. The export duty on diesel was raised by Rs 34 per litre to Rs 55.5 per litre from Rs 21.5 per litre.
In a separate notification, the government had increased the Road and Infrastructure Cess on diesel to Rs 36 per litre under provisions of the Finance Act, 2018.
